The Competition Bureau of Canada has initiated legal proceedings against Canada’s Wonderland Company, accusing it of misleading consumers by advertising park tickets and other items at lower prices that do not reflect the actual costs due to additional mandatory fees. These fees, which range from $0.99 to $9.99, are not included in the advertised prices, leading to accusations of deceptive marketing practices.

The Bureau claims that Canada’s Wonderland has engaged in false or misleading price representations by failing to disclose these mandatory processing fees upfront. This practice, referred to as drip pricing, is considered harmful as it prevents consumers from understanding the true cost of their purchases before completing transactions.

In response to these allegations, the Bureau has filed an application with the Competition Tribunal, seeking to compel Wonderland to cease its deceptive advertising practices, impose financial penalties, and provide restitution to consumers who were misled by the pricing tactics.

Matthew Boswell, the Commissioner of Competition, emphasized the importance of transparent pricing, stating that consumers should always be able to trust the initial advertised price. He urged businesses to review their pricing claims to avoid misleading consumers.

This legal action follows recent amendments to the Competition Act, which explicitly recognize drip pricing as a harmful business practice. The Bureau has a history of addressing deceptive marketing practices, having previously won a case against Cineplex for similar issues, resulting in a $39 million penalty.